Balance Transfer Guide

A balance transfer can save you hundreds or thousands in interest — if you do it right.

What Is a Balance Transfer?

A balance transfer moves existing credit card debt from one card to another — typically a new card that offers a 0% introductory APR for a set period (usually 12–21 months). During that promotional window, every dollar you pay goes toward principal, not interest.

How Balance Transfers Work

  1. Apply for a card with a 0% intro APR on balance transfers.
  2. Request the transfer — provide the account number and amount you want to move.
  3. Pay the fee — most cards charge 3–5% of the transferred amount.
  4. Pay down the balance before the intro period ends. After that, the regular APR kicks in.

When a Balance Transfer Makes Sense

  • You have high-interest debt you can realistically pay off within the intro period.
  • The balance transfer fee is less than the interest you'd otherwise pay.
  • Your credit score is good enough to qualify (usually 670+).
  • You won't add new debt to either card.

When to Avoid a Balance Transfer

  • You can't pay off the balance before the intro APR expires.
  • The fee wipes out your interest savings.
  • You're tempted to keep spending on the old card.

Balance Transfer Tips

  • Calculate your required monthly payment: divide the total balance (including the transfer fee) by the number of promo months.
  • Set up autopay so you never miss a payment — one missed payment can void the promo rate.
  • Don't use the new card for purchases unless it also offers 0% on new purchases.
  • Mark the promo end date on your calendar and aim to be paid off a month early.

Calculate Your Savings

Use our Interest & Payoff Calculator to see how much you'd save by transferring your balance to a 0% APR card versus paying your current rate.